Commercial Real Estate Value Calculator

6 Replies

Hello Everyone,

Does anyone have a commercial real estate calculator they are willing to share that helps you assess the value of the property? I am interested solely in residential commercial apartment buildings.   

Additionally, I am looking for recommendations on commercial lenders that accept 30% down or lower and able to work in markets across the U.S. If you know their terms please send me that as well. Thanks in advance. 

v/r,

Dom

The bigger pockets calculator can do whatever you want. Excel is good too.

Almost any bank will do 30% down loans. Depending on your net worth and income the big guys will work with you so would Freddie if the amount is high enough. 15-25 year amortization with 5-10 year balloon payments are common terms.

I personally get 5/1 adjustable with fully amortizing 15 year loans. Less cash flow, but much better debt reduction. Plus I’m not forced to refi. Rates are in the high 5’s at least in my area.

Lots of people on this website love the 25-30 year terms for maximum cash flow, but each to their own.

So you have your big down payment ready to go? What’s the source of that? Brrrr if possible, as you can’t buy too many expensive 30% down places before you are broke.

Excel for income valuation is pretty easy. If you can't get that from BP, probably should pay someone to analyze for you. Term sheets are unique for everyone at any given time, above post is as specific as you'll get.

@Domonick S. I'd like to make a clarification: every property is either commercial or residential. A multi-unit building with 4 units or less is considered residential; Anything 5 units plus is considered commercial. Keep it in mind when using the calculators as they will be different as well as the loans. 

Now in terms of the calculators, BP has some good residential calculators. 

If you need more help feel free to PM me.

Best!

@Domonick S. You've received good advice here. If you're buying a small property (under 10-15 units), you can get away with somewhat simple analysis. I would still seek the advice of someone experienced to walk you through the #s. 

The BP calculators are good but I would be very wary of relying on generic Excel models that one downloads off the internet. Best bet: take a week and teach yourself basic financial modeling/P&L analysis.

@Josh C. , @Ronald Rohde , @Alina Trigub , @Omar Khan  thank you all for your feedback! 

Josh, I am in search of a value add commercial property and will utilize HELOC funds from my primary residence and one of my investment properties. Indianapolis is actually one of the markets I am interested in. Would you happen to know what the current cap rate is for B class areas?

Watch Grant Cardone analyze properties on YouTube. He has dozens of shows that will familiarize you with how he does general calculations. You can also approach your commercial lender for advice. They will want the last couple months of the sellers tax returns and financial statements. And the “trailing 12”. Cardone says his best source of intelligence about properties and markets comes from the banks.